AI Takeaway
Aptiv (APTV) reported FY2025 revenue growth of 3.5% to $20.4B, but net income collapsed 90.8% to $165M and EPS fell to $0.75 from $6.97, driven by margin compression, elevated SG&A, and significant non-operating charges.
Revenue
$20.4B
++3.47% YoY
EPS (Basic)
$0.75
-89.24% YoY
Gross Margin
4.7%
-0.16% YoY
Operating Income
$1.18B
-35.72% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue grew 3.5% YoY to $20.4B, but Cost of Revenue rose 3.1% to $16.5B, leaving Gross Profit nearly flat at $963M (up just 0.1%). Gross Margin compressed slightly to 4.7% from 4.9%, indicating limited pricing power relative to input costs.
Source: Source: 10-K Income Statement
Operating Income fell 35.7% YoY to $1.18B from $1.84B, with Operating Margin contracting from 9.3% to 5.8%. A 14.2% surge in SG&A expenses to $1.67B was a key contributor to the operating income decline, alongside sustained R&D investment of $1.13B.
Source: Source: 10-K Income Statement
Net Income dropped 90.8% to $165M from $1.79B in the prior year, with diluted EPS falling to $0.75 from $6.96. The magnitude of the decline relative to the operating income drop suggests significant below-the-line charges, such as impairments, restructuring costs, or tax items, beyond what is visible in operating results.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockNet income fell 90.8% despite only modest revenue growth, indicating that Aptiv faces significant structural cost pressures or one-time charges that are difficult to predict. Operating Margin compressed by approximately 350 basis points to 5.8%, raising concerns about the company's ability to sustain profitability in a competitive automotive supply environment.
Source: Source: 10-K Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.86 versus the $1.89 analyst consensus — a -1.5% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $20.4B | $19.71B | +3.47% |
Cost of Revenue | $16.5B | $16B | +3.11% |
Gross Profit | $963M | $962M | +0.10% |
Operating Income | $1.18B | $1.84B | -35.72% |
Net Income | $165M | $1.79B | -90.77% |
EPS (Basic) | $0.75 | $6.97 | -89.24% |
EPS (Diluted) | $0.75 | $6.96 | -89.22% |
R&D Expense | $1.13B | $1.1B | +2.92% |
SG&A Expense | $1.67B | $1.47B | +14.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $23.41B | $23.46B | -0.19% |
Current Assets | $8.74B | $7.83B | +11.74% |
Total Liabilities | $13.91B | $14.37B | -3.19% |
Current Liabilities | $5.04B | $5.13B | -1.83% |
Stockholders' Equity | $9.21B | $8.8B | +4.67% |
Cash & Equivalents | $1.85B | $1.57B | +17.67% |
Long-Term Debt | $7.65B | $8.46B | -9.59% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.19B | $2.45B | -10.67% |
Investing Cash Flow | $-498M | $-507M | +1.78% |
Financing Cash Flow | $-1.44B | $-1.97B | +26.62% |
Share Buybacks | $397M | $4.1B | -90.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 4.7% | 4.9% | -0.16% |
Operating Margin | 5.8% | 9.3% | -3.54% |
Net Margin | 0.8% | — | — |
ROE | 1.8% | — | — |
ROA | 0.7% | — | — |
Current Ratio | $1.736 | — | — |
Debt to Equity | $1.511 | — | — |
Aptiv's FY2025 earnings were severely impacted, with Net Income falling 90.8% to $165M from $1.79B in the prior year, and diluted EPS dropping to $0.75 from $6.96. Revenue grew modestly by 3.5% to $20.4B, but a surge in SG&A expenses (+14.2%) and significant below-the-line charges crushed profitability.
Yes, Aptiv's revenue grew 3.5% YoY to $20.4B in FY2025, up from $19.7B in the prior year. However, this top-line growth was insufficient to offset rising costs, resulting in nearly flat gross profit and sharply lower operating and net income.
Key risks include Aptiv's extremely thin gross margin of 4.7%, which leaves little buffer against cost increases, a 14.2% surge in SG&A expenses outpacing revenue growth, and a Debt-to-Equity ratio of 1.51x that limits financial flexibility. The 90.8% collapse in net income also raises concerns about the nature and recurrence of non-operating charges.
Yes, Aptiv generated $2.19B in Operating Cash Flow in FY2025, which, while down 10.7% from $2.45B in the prior year, remains solidly positive. The large gap between Operating Cash Flow and Net Income ($165M) suggests significant non-cash charges are depressing reported earnings relative to actual cash generation.
Aptiv's balance sheet is relatively stable, with Cash & Equivalents rising 17.7% to $1.85B and Long-Term Debt declining 9.6% to $7.65B, resulting in a Current Ratio of 1.74x. However, profitability is under severe pressure with a Net Margin of just 0.81% and ROE of 1.79%, making earnings quality a key concern for investors.